Auto Industry 101.5: Takeover prices. (Prepare to be disappointed.)

Geely paid $1.5 billion for all of Volvo

Geely paid $1.5 billion for all of Volvo

In this 5th installment of Auto Industry 101, we talk about the price for your toils and troubles of starting a car company. This short course is written due to the recent interest in disrupting the auto industry. The course is kept extremely simple, Auto Industry for the Twitter Generation. Those in the industry will find nothing new. Those new to the industry hopefully will find a helpful primer.

Takeover fantasies usually help prop up a stock price, and with Tesla’s shares slowly trundling in the general direction of Mother Earth, there has been no shortage of takeover fantasies. Elon Musk himself brought up BMW last year, only for BMW to vehemently deny any possible alliances, or dalliances. I am frequently asked what Apple, or a global automaker would pay for Tesla. Here is my usual answer. [Continue Reading]